John Boehner changes debt limit plan to secure Tea Party support

House Speaker John Boehner of Ohio walks out of a caucus meeting on Capitol Hill in Washington, Friday, July 29, 2011.

/ AP Photo/Susan Walsh

Updated 6:09 p.m. Eastern Time

The House Republican leadership appears to have found a way to get their members to vote in favor of their debt limit plan: By adding a Balanced Budget Amendment requirement that makes the bill even more toxic to Senate Democrats and the White House. Even before the change, Democrats had vowed to vote down the bill. 

House Speaker John Boehner took to the Senate floor Friday afternoon shortly before the planned vote, saying he has "worked since the first week of this session... to avoid being where we are right this moment."

Boehner said he "stuck my neck out a mile to try to get an agreement with the President of the United States," but that "a lot of people in this town can never say yes." To cheers from his caucus, he called on Democrats and the White House to "tell you where you are." 

"End this crisis now," he said.

Following a closed-door meeting of the House GOP Friday morning, Republican Reps. Jeff Flake of Arizona, Phil Gingrey of Georgia and Jeff Landry of Louisiana said they had gone from a "no" to a "yes" on Boehner's plan to increase the debt limit - and it appeared several other members had also come on board. The House leadership cancelled a planned vote on the bill last night after it became clear that they could not win enough votes from hardline fiscal conservatives for passage.

What changed? Members say the new version of the bill ties a second debt ceiling increase roughly six months from now to successfully sending a Balanced Budget Amendment to the states, something that would require a 2/3 majority in both the House and the Senate.

A vote on the new version of Boehner's plan will be held today around 6:30 p.m. Eastern Time - and the bill is expected to pass.

Republicans need 216 votes for passage, and can afford to lose 24 votes and still pass the measure without Democratic support.

The inclusion of the Balanced Budget Amendment prompted the Club for Growth, the influential fiscal conservative group, to remove its objection to the bill. In a statement Friday morning, Club for Growth President Chris Chocola said, "We strongly believe that a Balanced Budget Amendment is the piece of the puzzle that puts us on a path to fiscal responsibility and fundamentally reforms our broken budget process. If this new bill accomplishes that goal then the Club for Growth will withdraw its opposition to the Boehner plan and will not key vote against it."

In reality, however, there is no chance that a Balanced Budget Amendment will get the two-thirds majority necessary for passage in both chambers. (To go into effect, it would also need to be ratified by three-fourths of the states.) If Congress ends up passing some sort of compromise legislation between the Senate and House plans, the Balanced Budget Amendment will almost surely be stripped out.

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President Obama on Friday morning urged lawmakers to come to a bipartisan solution to reach a deal to increase the nation's $14.3 trillion debt limit before Tuesday's deadline. 

"The time for putting party first is over. The time for compromise on behalf of the American people is now," Mr. Obama said. "And I'm confident that we can solve this problem."

The addition of the Balanced Budget Amendment provision would actually move the House plan further to the right, however. But it appears to be the only way for Boehner and his leadership team to save face and pass a Republican version of a bill to raise the debt ceiling in the last days before the deadline is reached.

The Boehner plan is a two-step plan that would initially cut spending by more than $900 billion. It would only raise the debt limit enough to last until roughly January, setting up a replay of the debt limit fight just months from now. Democrats say the two-step plan is unacceptable because the short-term nature of the first step creates economic uncertainty and puts the United States' Triple-A credit rating at risk.

Mr. Obama dismissed the Republican plan Friday, saying it "has no chance of becoming law." He urged lawmakers to take up a plan from Senate Majority Leader Harry Reid or a plan put forward earlier by Senate Republican leader Mitch McConnell as the basis for a bipartisan agreement.

Reid said Friday morning that there will be movement forward on his plan, which would cut around $2 trillion in spending and extend the nation's borrowing authority through 2012, by the end of the day.

"This is likely our last chance to save this nation from default," Reid said. "The question is - will today's Republicans break away from the shrill voice of the Tea Party and return to the Republican Party of Ronald Reagan."

Reid's plan makes similar cuts to the first step of the Boehner plan, but it also includes about $1 trillion in savings tied to ending the wars in Iraq and Afghanistan -- something the United States is already planning to do. Republicans say the Reid plan is grounded in accounting tricks and doesn't do enough to address the nation's massive deficit and debt problem. 

Mr. Obama warned Friday morning that if an agreement isn't reached, the U.S. may lose its Triple-A credit rating "not because we didn't have the capacity to pay our bills -- we do. But because we didn't have a triple-A political system to match our triple-A credit rating."

If the United States' credit rating were downgraded, it would be harder to borrow money, and interest rates would potentially increase across the board. "That's inexcusable," Mr. Obama said. "there are a lot of crises in the world we can't always predict or avoid... This isn't one of those crises."

CBSNews.com special report: America's debt battle

9 Photos

Facts about the debt

[slatep]

Do away with the Republican and Democratic parties.

Cap the amounts politicans can spend for their re-elections.

Limit the campaign process to 8 weeks before the election.

This would give every politician a level playing field.

It would also reduce the amount of stress on the American people.

Do not have "sides" seated in Congress.

Seat them alphabetically and mix them up really good.

The Congress we have now has completely forgotten why they are there.

There is absolutely no thought or concern for the people of the United States.

They are merely interested in winning friends and influincing people to garner funds for their next campaign.

If you are not satisfied with the current Congress; don't vote for any of them in the next election.

I seriously doubt the Republicans would have won the House if people had known what they were going to do when once they got in there.

If they continue along these lines, the vote against the Republicans is going to look like a garden party compared to the :punishing" vote against the Democrats in 2010.

Money talks.

Obama wants to raise $1 Billion for his 2012 campaign.

We all know that part of the problem with most politicians today is that they are bought and paid for before they even get into Office.

We also need to go back to the system "one man, one vote".

STOP RE-OFFENDERS - DON'T VOTE FOR THEM.!

Goernment spending has gotten so out of hand, they say $2.1 BILLION like the average American says $2.10.

Congress elected not to take their cost of living raise this year ( which BTW is much larger than everybody else's) in view of the debit crisis.

They have hearts as big as a gnats ass.

Sometimes I think all this BS about the deficit is just a big smoke screen to keep Americans from finding our what other legislation they are working on in the meantime...legislation BTW which is "dictating" to the American people everythin from the health care bill to what kind of light bulbs we can use.

The health care bill is the biggest travesty ever perpetrated "against" Americans.

All those Congressmen; who are supposed to be acting in the best interest of the people of thic Country; never even read the damn thing; yet they voted to pass it.

This in itself should tell us how little thought is really put into any legislation.

In the public workforce; if you're not doing your job; you get FIRED.

This is exactly what should happen to all the talking heads in DC.!

[Firedog4]

This is why we need a RECALL ELECTION in every state, with the middle class and those forced into poverty by the ultra rich getting out and voting IN MASS. What would these Tea Party people have done with those of us who, like me was one of those who was denied Health Insurance because of the pre-existing condition of Chronic Bronchitis. I am now disabled and because I have never been able to participate in any retirement plan I depend upon my Social Security. What would these heartless ultra rich mouthpieces have done with us...taken out and shot? The following Ballot Measures need to be put before the people; TERM LIMITS for all legislators. FLAT tax for EVERYONE regardless if they earn Billions or minimum wage. The Government MUST REPAY every penny taken from Social Security over the years. Legislators CANNOT raise their own salaries without raising the minimum wage. Campaign contributions should be limited to $500.00 per individual and $2,000.00 for corporations and PAC's. Make Special Interest lobbying illegal. An average citizen should NOT be shoved out of a legislators office as I was from my Senators office by a group of lobbyists. Whenever McConnell and Bonner talk about "the American People" they are referring to the ultra rich and special interests. not the average middle class American who built this country.

[petesis]

Boehner has alot in common with Obama. He thinks that by giving in to some of the Tea Party demands, that they will be satisfied, or that they will start to play along. He is mistaken. He would be better off to just resign from the speakership with honor and dignity. They will unelect him anyway next chance they get.

[jahmartin-2009]

Of course Boehner caved into the Tea Party bullies. He has no backbone. He needs to hand the reins over to a REAL Republican who can't be intimated (nice word for: pushed around) by Tea Party hooligans who have no love of this country. The greed and absorption with their own selfish interests (namely protecting the wealthy from paying their fair share of the tax burden) consumes them. I can't imagine what possessed Virginians to elect a man like Eric Cantor. Such a poor excuse for a human being. I have visited beautiful Virginia twice in the past. Glad I got to see it a couple times before the people in Virginia revealed themselves. Wonderful memories but I'll never go back again.

[cattiej]

I don't know when this crisis will end but I know one thing. these t party people are and should be found guilty of TREASON, they are trying to overthrow our government by force.If the don't get their way they will shut it down. They are like the bullies in the school yard. If this was happening during World War II, these people would be arrested for Treason against the people of the United States of America. I know our country isn't perfect and many of the people in Congress have been in Congress for year and they are the people who have spent, spent and spent..now they want to cry FOUL...we they are the ones who have spent our country into debt. They are the ones that have diverted the funds that people like us have paid into Social Security pension fund for years.(we have paid since we both started working in 1948). We didn't make much money per hour but we ALWAYS worked and never had any form of aide..Now our country is in trouble because of these illegal wars and giving money to countries who had their own money but just kept taking and taking from the coffers of the American taxpayer. Pakistan and Afghanastan to name just 2 and there are many many more..I think it is time that the people who live in the districts where these t party people live to start impeachment proceedings against them..they were elected to govern our county not push to bend our will to let them take over our country. These young upstarts need to be taken down a few pegs and the senior citizens of America are just the people who can do the job. We don't take nothing from some snotty nose kids who think they are above the laws of our land.

[NorthrupP61]

Republicans, even though you're now a subsidary of the Tea Party, you can still stand up and support the middle class instead of the wealthy and corporations. Maybe there are a few of you who still have hearts and souls.... No?

[NorthrupP61]

"Crying John" is a weak-kneed pawn, pandering to the worst of his party. They'd see the government default on debts and see the rest of us driven deeper into poverty sooner than move an inch from their personal prejudices.

[robbyr2]

If he wanted to save his country and the western world, he would have changed it to pick up Democratic votes even if it cost him some TP votes. He will lose his speakership either way to his pal, Cantor in 6 months.

[PR_in_Alabama]

Back in DEC Obama agree with the cry babys GOP not to end the BUSH tax cuts..OK!! WHERE THE HELL ARE THE JOBS? 8 MONTH LATER...hello, why do we keep listening to these YAHOOOOS of the GOP...!!?

[Arbolesco]

No gov. official needs to cater to the Tea Party. They are a bunch of uneducated loud-mouths. Just ignore them. They will go away eventually.

[NorthrupP61]

Wish you were correct, but it didn't work in Germany in the '30s and it won't work now. Once fanatics get a toe-hold, it takes a lot to dislodge them. The TP thinks the rest of us are weaklings or fools and that they can take over using fear and misinformation. Which, as history shows, DID work in Germany of the '30's. Good luck to us. Good luck to U.S.